How effective is regulation in preventing greenwashing? Lessons from the mining sector in an emerging market

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Abstract

The study aimed to investigate whether regulatory mechanisms are effective in curbing greenwashing. The increasing prevalence of greenwashing casts doubt and scepticism on bona fide sustainability performance. This data was collected between 2019 to 2023. The questionnaire was sent to a cross-sectional sample of 150 employees involved in regulatory issues from three divisions within South Africa’s Department of Minerals and Energy (DMR). The questionnaire gathered perceptions of regulatory stakeholders about the sustainability performance (SP) and sustainability reporting (SR) practices of South Africa’s Mining Companies (SAMCs). The responses were ranked on a five-point Likert scale ranging from “Strongly disagree” to “Strongly agree”. Descriptive statistics, exploratory factor analysis (EFA), and structural equation modelling (SEM) were employed in the data analysis. Limited greenwashing tendencies were found in occupational health, safety and labour practices. Although there was no significant evidence of greenwashing in local enterprise development, some variables, like local housing, skills development, local infrastructure development, and environmental management activities, may require attention and enhancement. The results indicate that regulation alone has limited success in preventing greenwashing within the mining sector of South Africa. Future studies may investigate sector-specific laws and regulations to curb greenwashing.

Keywords: Greenwashing, Mining Industry, Regulation Theory, Stakeholder Theory, Structural Equation Modelling (SEM), Sustainability

Authors’ individual contribution: Conceptualization — R.M.M., H.M.v.d.P., and B.M.; Investigation — R.M.M.; Investigation — R.M.M.; Writing — Original Draft — R.M.M., H.M.v.d.P., and B.M.; Writing — Review and Editing — H.M.v.d.P. and B.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: Q3, Y8

Received: 21.10.2024
Revised: 08.02.2025; 19.03.2025; 07.10.2025
Accepted: 24.10.2025
Published online: 28.10.2025

How to cite this paper: Matakanye, R. M., van der Poll, H. M., & Muchara, B. (2025). How effective is regulation in preventing greenwashing? Lessons from the mining sector in an emerging market. Journal of Governance & Regulation, 14(4), 189–199. https://doi.org/10.22495/jgrv14i4art18